One of the most important measures of success for any city in the UK is the amount of Foreign Direct Investment (FDI) it can attract. FDI strengthens a city’s economy and makes it more resilient to economic downturns thanks to deepened ties with other economies around the world.
For a region like Greater Manchester which is home to one of the UK’s most dynamic economies, FDI comes as standard. Investors from around the world want to put their money into the city and be part of the ongoing 21st century transformation happening here.
Whereas FDI in the North West fell as a whole according to the EY Attractiveness Survey 2022, the higher value areas in the region continued to flourish. First among these is Manchester.
London retained the top spot, but Manchester was joint second in the FDI table and is home to 31 currently-active projects as we speak. This is not only an increase over last year, but is also more than pre-pandemic, thereby demonstrating Manchester’s strength and potential for future growth.
Stephen Church, North market leader at EY, said: “One thing which is consistently very clear from investors is that the strength of local business networks matters when they’re choosing where to site their projects within a country.
"Local skills and infrastructure, support from regional development bodies and access to regional grants are also part of the mix too, reinforcing the importance of devolving power and fostering local ecosystems. Building a unique sense of place from in its economy will help the North West build its attractiveness to investors.”
Manchester has all of those qualities in abundance, as well as outstanding transport links to the rest of the UK and the world, world-class universities and much more.
Furthermore, we recently covered Irwin Mitchell’s UK Powerhouse 2022 report which confirms this. The report estimates that from its current size of more than £68bn, Greater Manchester’s regional economy will grow to £71bn by the end of next year, packing a huge amount of growth into the space of 18 months. Fuelling that growth will be the creation of at least 28,000 jobs if the current FDI trends are accurate.
Tim Newns, Chief Executive at MIDAS, Manchester’s Inward Investment Agency, said: "Greater Manchester and the NW were relatively resilient [during the pandemic] compared to other areas of the UK such as London and the South East.
“MIDAS and Greater Manchester’s figures for the 2022 have been record breaking, showing a positive bounce back since restrictions were relaxed which is much more reflective of Manchester’s position over the last decade, where it has been the most invested in city in the UK outside London, reflecting Manchester being the fastest growing city over the last few years.
“MIDAS’ latest figures for 2021/22 show that over 20% of projects were R&D oriented, 20% were low carbon-related and over 20% were HQs, directly reflecting the ambitions of Greater Manchester’s Economic Vision."
This is a fantastic time to consider an investment in Manchester. The FDI flowing into the city, combined with huge infrastructure investment from local and national government, means that Manchester is the place to be.
The employment opportunities and lifestyle on offer is improving all the time, and the growing number of workers and students flocking to Manchester are a testament to this. The city’s property market reflects this vibrancy – learn more about investing in Manchester apartments by getting in touch with our team today.
